Despite political tensions and tariff threats, the United States remains heavily dependent on Canadian oil, Cenovus Energy CEO Jon McKenzie said Tuesday at an energy conference in Calgary.
Nearly 4 million barrels per day of Canadian crude are exported to the U.S., making Canada its largest foreign oil supplier. McKenzie emphasized that the energy systems of the two countries are deeply interconnected, regardless of President Trump’s claims that the U.S. doesn’t need Canadian oil.
“What hasn’t changed is energy economics and energy physics,” said McKenzie. “The reality is we are hardwired into the U.S. system.” Many U.S. Midwest refineries are specifically configured to handle Canadian grades of oil.
The current trade tensions have reinforced the urgency for Canada to diversify its energy export markets, McKenzie noted, but he cautioned against rash policy responses. Instead, he urged Prime Minister Mark Carney’s new government to pursue long-term strategies that strengthen North American energy ties.
“We need to make sure we don’t act viscerally when we’re threatened and that we act intelligently in our long-term interest,” McKenzie said.
Carney, who came to power in April on a wave of anti-Trump sentiment, has pledged to fast-track national interest projects to transform Canada into a conventional and clean energy superpower. However, McKenzie warned against the federal government picking winners and losers in the energy sector, advocating instead for broad regulatory reform to attract investment.
On the operational front, the company also confirmed that it is ramping up production at its 238,000 bpd Christina Lake oil sands site after temporarily shutting it down due to wildfire threats in early June.